Yahoo to vote on $1.1 billion Tumblr purchase, report says

Reuters

Posted:
05/18/2013 08:01:55 AM PDT

Updated:
05/18/2013 08:02:11 AM PDT

SAN FRANCISCO -- Yahoo's (YHOO) board will meet on Sunday to vote on whether to offer $1.1 billion in cash for New York-based blogging service Tumblr, tech blog AllThingsD cited sources close to the situation as saying on Friday.

Such an acquisition would be CEO Marissa Mayer's largest deal since taking the helm of the once-iconic Internet company in July 2012. Yahoo is keen on Tumblr because its younger user base would enhance the older website's "cool factor," the technology blog cited the sources as saying.

The news could be announced as soon as Monday, it said. Yahoo has invited press to an event in Manhattan at which it promised to "share something special," without elaborating.

Mayer, who spent 13 years at Google (GOOG) Inc, is trying to revitalize a former Internet powerhouse that in recent years has struggled with declining business. On its home page, Tumblr says it hosts 108 million blogs, with 50.7 billion posts between them.

Yahoo declined to comment, while Tumblr did not respond to requests for comment.